28.01.202607:35:42UTC+00Fed Set to Pause Rate Cuts

The Federal Reserve is anticipated to maintain the federal funds rate within the 3.5%–3.75% range during its meeting in January 2026. This marks a pause in its easing cycle following three consecutive rate reductions last year, which lowered borrowing costs to their most reduced levels since 2022. Investors are keenly looking for insights regarding the timing of the next rate cut, although it's possible that policymakers will hint at a prolonged pause. Recent data indicates a significant slowdown in job growth, with unemployment rates stabilizing, and inflation persisting above the Fed's 2% target. According to the Fed's December projections, only a single 25-basis-point rate cut is expected for 2026. Current market anticipations suggest this cut may occur in June, with a lesser likelihood of an additional move in December. Additionally, Chair Powell's first press conference since the Federal Reserve received grand jury subpoenas will likely address questions surrounding political influence and the independence of the central bank.